By DAN STRUMPF NEW YORK--Natural-gas futures surged to their highest level for the year

Mr. Calder said prices might have difficulty sustaining current levels because utilities have greater incentive to switch back to coal-fired plants as gas prices rise. "(Natural-gas futures) hit a brick wall right at $3.60," he said. "That might be bearish going foward because of the fundamentals of fuel switching."

U.S. gas inventories now stand at 2.083 trillion cubic feet, 15% below last year's level but also 15% above the five-year average level for this time of year.

Lowest general estimate for getting some rigs back is $4.50. But the rigs have been largely reconfigured for oil and natural gas at $4.50 is not remotely close to the irr for oil.

Obama with his dishonesty is setting Americans up for a nasty price shock on natural gas at some point. The good news is Americans know exactly where to get more. But will a Obama gun shy industry move quickly?

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